Regulation of President of the RI No. 1/2014 establishing the Guidelines for Compiling General Plan on National Energy

Article 1 Considering What is meant in this Presidential Regulation Whereas, to implement the provision in Ar- by: tide 17, paragraph (3) of Law Number 30 Year 2007, (1) General Plan on National Energy, hereinafter re- concerning Energy, it is necessary to stipulate Presi- ferred to as RUEN, shall be Government policy dential Regulation on Guideline for Compiling General on energy management plan nationawide which Plan on National Energy; constitutes application and implementation of Na- tional Policy on Energy cross sectors in order to In view of: achieve the target of National Policy on Energy. 1. Article 4, paragraph (1) of the 1945 Constitution of the Unitary State of Republic of Indonesia; (2) General Plan on Energy in Provincial Region, here- inafter referred to as RUED-P, shall be Provincial 2. Law Number 30 Year 2007, concerning Energy Government policy on energy management plan (Statute Book of the Republic of Indonesia Year provincial level that constitutes application and 2007 Number 96, Supplement to Statute Book implementation of RUEN plan cross sectors for of the Republic of Indonesia Number 4746); achievement of the target of RUEN. DECIDES: (3) General Plan on Energy of Regency/Municipality regions, hereinafter referred to as Regency-Mu- To stipulate: nicipality-RUED, shall be policy of regency/munic- PRESIDENTIAL REGULATION ON GUIDELINE FOR ipality government on energy management plan COMPILING GENERAL PLAN ON NATIONAL ENERGY regency/municipality level that constitutes appli- cation and implementation of RUED-P plan cross Business News 8581-858217-23-2014 19 sectors in order to achieve the target of RUED-P b. accomplish consistency of the material and sys- tem uniformity in compiling RUEN for the Central (4) National Policy on Energy, hereinafter referred to Government, RUED-P for provincial government, as KEN, shall be policy for energy management and Regency-Municipality-RUED for regency/mu- which based on the principles of justice, conti- nicipality government. nuity, and enviromental insight for the purpose of accomplishing independence and defense on Article 4 national energy. RUEN, RUED-P, and Regency-Municipality- RUED shall be compiled with due observance of the (5) Minister shall be minister exercising administra- principles of efficiency, transparency, and participa- tion affairs on energy. tion. (6) Ministry shall be ministry exercising administra- Article 5 tion affairs on energy. RUEN, RUED-P, and Regency/Municipality- RUED shall be compiled based on the data of the ba-

Article 2 sic year and the target of KEN. Scope of governing of this Presidential Regu- lation covers: CHAPTER II a. preparation of RUEN; COMPILATION b. preparation of RUED-P and Regency-Municipality- GENERAL PLAN ON NATIONAL ENERGY RUED; and Part One c. role of the society. General

Article 6

Article 3 (1) The Central Government shall compile RUEN plan This Presidential Regulation is meant to: based on KEN. a. provide guideline in compiling RUEN for the Cen- tral Government, RUED-P for provincial govern- (2) The RUEN plan referred to paragraph (1) shall be ment, and Regency-Municipality-RUED for regen- compiled by the Minister with participation of the cy/mun icipality government; and regional government and with due observance of the opinion and input from the society. Business News 8581-858217-23-2014 GDV[ RNMENT RFGULI F , ONS

Article 7 b. Secretary; and The RUEN plan referred to in Article 6, must c. Members. at least state the: a. present condition of national energy and the con- (3) The office of Chairman of RUEN Plan Compiling dition thereof forthcoming; Team referred to paragraph (2) letter a will be oc- cupied by Echelon I of the Ministry. b. stipulation of vision, mission, objective and target of national energy in the form of the stipulated (4) The office of Secretary of RUEN Plan Compilation target and the target to be achieved; and Team referred to paragraph (2) letter b will be oc- cupied Echelon II exercising the function of RUEN c. policy and strategy of management of national compilation at the Ministry. energy that applies the policy, strategy, institu- tional, policy on instrument, and program for en- (5) Members of the RUEN Plan Compilation Team ergy development. referred to paragraph (2) letter c consist of rep- resentatives of the Ministry and/or the relevant

Article 8 government institution. The RUEN plan referred to in Article 7 shall be compiled systematically as specified the Attachment (6) Duty of RUEN Plan Compiling Team is to review constituting inseparable part of this Presidential Regu- the RUEN Plan compiled by the working unit car- lation. rying out the function in compiling RUEN compre- hensively and cross sectors of the Ministry. Part Two Mechanism for Compilation General Plan Article 10 on National Energy (1) The working unit referred to in Article 9, para-

Article 9 graph (6), shall function to prepare, process, and (1) In compiling RUEN plan, the Minister shall estab- formulate RUEN Plan. lish a Team for Compiling RUEN Plan. (2) The working unit referred to paragraph (1) in com- (2) The composition of the Team for Compiling RUEN piling RUEN plan shall include participation of re- Plan referred to paragraph (1) comprises: gional government. a. Chairman; Business News 8581-8582/7-23-2014 21

Article 11 the Chairman of National Energy. (1) In reviewing the RUEN plan, the RUEN Plan Com- piling Team shall take due observance of the opin- Article 14 ion and input from the society. The RUEN shall be stipulated in accordance with the working system at the meeting of the Board (2) The society referred to paragraph (1) comprises: of National Energy. a. association that relates to energy; b. universities; and Article 15 c. other members of the society having compe- (1) RUEN shall be stipulated within one (1) year at tence in the field of energy. the latest after KEN is stipulated.

Article 12 (2) RUEN may be reviewed and updated periodical- (1) The RUEN Plan Compiling Team shall submit ly once in five (5) years or at any time in line RUEN Plan to the Minister. with the change in strategic environment and/or change in KEN. (2) The Minister shall submit the RUEN Plan referred to paragraph (1) to the Board of National Energy. CHAPTER III COMPILATION OF GENERAL PLAN ON ENERGY OF (3) The Chairman of the Board of National Energy PROVINCIAL REGION GENERAL PLAN ON ENERGY shall stipulate the RUEN Plan referred to para- OF REGENCY/MUNICIPALITY REGION graph (2). Part One Compilation of General Plan on Energy of

Article 13 Provincial Region (1) If there is different of opinion and/or input within Article 16 the Board of National Energy on the RUEN Plan (1) The Provincial Government shall compile RUED-P referred to in Article 12, paragraph (2), the Board Plan by referring to the RUEN. of National Energy shall hold joint review with the Ministry. (2) The RUED-P plan referred to paragraph (1) shall be compiled by Work Unit of Provincial Regional (2) The RUEN Plan resulting from the review referred Instrument exercising administrative affairs on to paragraph (1) shall be stipulated at RUEN by etlergytyj inctuding participation of: 2'2 Business News 8581-8582/7-23-2014 a. Central Government; Part Two b. Regency/Municipality government; and Compilation of General Plan on c. stakeholder. Energy of the Region

Article 18 (3) The RUED-P plan referred to paragraph (1) must (1) Regency/municipality government shall compile at least state: Regency/Municipality-RUED plan be referring to a. present condition of energy and in the future; the RUEN and RUED-P. b. stipulation of vision, mission, objective, and target on energy of the region in the form (2) The Regency/Municipality plan referred to para- of stipulated target and the target to be graph (1) shall be compiled by Work Unit of achieved; and Regional Instrument of Regency/Municipality c. policy and strategy of management of energy exercising administration affairs on energy by in- of the region that applies the policy, strategy, cluding participation of: institutional, instrument of policy, and devel- a. government of Province; and opment program of energy. b. stakeholder. (4) The RUED-P plan shall be compiled systematically (3) The Regency/Municipality-RUED plan referred to as specified in the Attachment taht constitutes paragraph (1) shall at least state: inseparable part of this Presidential Regulation. a. condition of energy at present and forthcom- ing; (5) RUED-P plan shall be stipulated under Regulation of Provincial Region. b. stipulation of vision, mission, objective, and target of energy of the region in the form of

Article 17 stipulated target and the target to be achieved; (1) RUED-P plan shall be stipulated within one (1) and year at the latest as of the RUEN is stipulated. c. policy and strategy of management of energy (2) RUED-P shall be reviewed and updated periodi- in the region applying the policy, strategy, in- cally once in five (5) years or at any time in line stitutional, instrument of policy, and develop- with the change in environmental strategy and/or ment program of energy. ameMment 16 the RUEN. Business News 8581-858217-23-2014 I 23 (4) Regency/Municipality-RUED plan shall be corn- within 30 (thirty) working days, effective as of: plied systematically as specified in the Attach- a. the Head of working unit exercising the func- ment that constitutes inseparable part of this tion in compiling RUEN at the Ministry shall Presidential Regulation. announce the RUEN compilation program through the website of Ministry; (5) Regency/Municipality-RUED plan shall be stipu- lated under Regional Regulation of Regency/Mu- b. the Head of working unit of Provincial Region- nicipality. al Instrument exercising administrative affaris on energy shall announce the RUED-P plan

Article 19 compilation through the website of provincial (1) Regency-Municipality-RUED plan shall be stipulat- government or other media; ed within one (1) year as of the RUED-P is stipu- lated. c. the Head of working unit of Regional Instru- ment of Regency/Municipality exercising ad- (2) Regency-Municipality RUED plan shall be revei- ministrative affairs on energy shall announce wed and updated once every five (5) years or at the compilation plan of Regency/Municipality- any time in line with the change to environmental RUED plan through the website of regency/ strategy and/or amendment to the RUED-P. municipality government or other media. CHAPTER IV CHAPTER V ROLE OF THE SOCIETY OTHER PROVISIONS

Article 20 Article 21 (1) The society, either individually or in group may (1) The work unit exercising the function in the com- take role in the compilation of RUEN, RUED-P and pilation of RUEN at teh Ministry shall synchronize Regency-Municipality-RUED. and integrate the compilation of RUEN and RUED- P plans. (2) The society referred to paragraph (1) may take role by providing idea, data, and/or information in (2) The work unit of Provincial Regional Instrument writing. exercising administrative affairs on energy shall synchronize and integrate the compilation of (3) The society referred to paragraph (2) shall take rote RUED-P and Regency-Municipality-RUED. 24 Business News 8581-858217-23-2014

Article 22 ATTACHMENT Teh provincial government in compiling RUED- P plan and the government of regency/municipality GENERAL PLAN ON ENERGY OF in compiling Regency-Municipality-RUED shall initiate PROVINCIAL REGION AND consultation with the Ministry. GENERAL PLAN ON ENERGY OF REGENCY/MUNICIPALITY REGION CHAPTER VI CLOSING PROVISION I. PREAMBLE

Article 23 This Presidential Regulation comes to force Some points need to be prespared and initiated on the date it is enacted. by Central Government, Provincial government or regency/municipality government in the compiling For public cognizance, this Presidential Regu- process of RUEN, RUED-P, and Regency/Munici- lation shall be announced by placing it in the Statute pality-RUED shall be to: Book of the Republic of Indonesia. 1. explain the background of compiling RUEN, Stipulated in Jakarta RUED-P, or Regency/Municipality- RUED Dated January 2, 2014 plans and the importance thereof in the man- sgd. agement system of national/regional energy. DR. H. SUSILO BAMBANG YUDHOYONO In this background, the issue and challange in energy management encountered and an- Enacted in Jakarta ticipated to be encountered in the future in Dated January 22, 2014 regional, national level or globally; MINISTER OF LAW AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA, 2. identify the legal aspect to Central Govern- sgd. ment, provincial government, regency/munic- AMIR SYAMSUDIN ipality governemnt on their respective duty, function, and authority in the management of STATUTE BOOK OF THE REPUBLIC OF INDONESIA energy nationwide and regionally. YEAR 2014 NUMBER 11 t 3. explain the position and relevancy RUEN, Business News 8581-8582/7-23-2014 1 25 • • •• • ••• ‘. T• • GOVERNMEN1 RUED-P, or Regency-Municipality-RUED plans ergy, and implementation of energy con- with the document of national/regional plan- servation; ning and the nature of compilation of RUEN, c. energy infrastructure; RUED-P, or Regency-Municipality-RUED in- d. subsidized oil fuel and electricity; volving top down (top down) process and and e. economic price of energy commodity; the same time bottom up (bottom up) pro- f. environmental impact caused by energy cess. production and consumption; g. measures to control critical condition and 4. explain the terms and meaning contained in urgent situation of energy. the RUEN, RUED-P, or Regency/Municipality RUED plans and their relevancy with the con- From the above issue on energy, it is neces- text of management of national/regional en- sary to conduct analysis in order to seek stra- ergy. tegic solution which later will be mentioned in the RUEN, RUED-P, and Regency/Municipali- II. PRESENT CONDITION OF NATIONAL/REGIONAL ty-RUED. ENERGY AND FUTURE EXPECTATION 2. The present condition of energy nationally/re- The general condition to be specified in the RUEN, gionally RUED-P, and Regency-Municipality-RUED shall be Conduct inventory and make verification on among other things, as follows: the data of energy management nationally/re- 1. Issue on Energy gionally in the basic year of modelling accord- Definition of the result of identification from ing to KEN, covering among other things: various issues on energy, either regional, na- a. indicator of socio-economy constituting tional, or global. Specifically the general is- the general image of socio-economy in the sues on energy sector that may be disclosed basic year, that at least contain PDB, reve- are among other things, concerning: nue per capita, total number of population, a. dependency on fossil energy, specifically total number of manpower, total number oil fuel, whereas fossil energy resource is of motor vehicles, rate of unemplolyment, becoming less; and rate of poverty; b. utilization of new energy, renewable en- b. indicator of energy constituting general k Business News 8581-8582/7-23-2014 image of energy condition, that at least 1) need for energy, consists of sub-model contain potential and utilization of energy, covering household, transporation, in- mixed energy, electrificated ratio, energy dustry, etc., and non-energy; elasticity, energy intensity, supply and need for energy, energy consumption per 2) energy supply consists of sub-modal capita, electricity consumption per capita, covering electric power, natural oil and and energy reserve; gas, coal, and new energy and renew- able energy;. c. environmental indicator constituting gen- eral image of environmental condition, c. compile and stipulate basic assumption that at least contain CO2 emission per and scenario: capita and CO2 emission per PDB. 1) basic assumption covers: a) growth of population to be 3. Energy Condition Nationally/Regionally Forth- achieved nationally/regionally in coming the RUEN, RUEN-P, and Regency/ Contains the result of modelling calculation in Municipality-RUED to be adjusted the form of energy projeced condition nation- to the target of KEN; ally/regionally in the future in order to achieve the targets stipulated in the KEN, RUEN, b) growth of PDB to be achieved na- RUED-P or Regency-Municipality-RUED. The tionally/regionally in the RUEN, result of modelling consits of energy indicator RUED-P, and Regency-Municipali- and environment indicator. ty-RUED to be adjusted to the tar- Measures for modelling calculation are as fol- get of KEN. lows: a. conduct inventory and verification of the 2) basic scenario, illustrating the condi- data on energy management nationally/ tion in the future considered to op- regionally in the modelling basic year ac- erate, such as the tendency existing cording to KEN, as referred to figure 2. and taking palce without intervension from policy that relates to energy sec- b. formulate model structure with two (2) tor; prime modu(o, Business News 8581-8582/7-23-2014 I 27 3) scenario of RUEN that refers to accom- d. accelerate utilization of new energy, re- plishment of the target of KEN; newable energy, and preserved energy; 4) scenario of RUED-P or Regency/Mu- e. optimize improvement of added value in nicipality RUED refers to the program energy use; stipulated in the RUEN. f. motivate energy management with envi- d. operate the model by using software that ronmental insight. applies top down method (top down) and bottom up (bottom up) in energy planning. 3. Objective shall be to compile and implement the policy, strategy and development program III. VISION, MISSION, OBJECTIVE AND TARGET OF on energy in order to achieve the targets stip- NATIONAL/REGIONAL ENERGY ulated in the KEN, RUEN, RUED-P, or Regen- 1. The vision referred to in RU EN, RUED-P, or cy/Municipality-RUED. Regency/Municipality-RUED is general for- mulation on fulfillment of the local need for 4. Target shall be targets to be achieved in com- energy, continuosly, fairly, and to optimum pliance with the objectives stipulated in the in the context of accomplishing defense and KEN, RUEN, or Regency/Municipality-RUED. independency on national/reguinal energy. IV. POLICY AND STRATEGY ON ENERGY MANAGE- 2. Mission covers: MENT NATIONALLY/REGIONALLY a. guarantee available energy nationally/re- Defines the outline of the tendency of teh direc- gionally; tion of policy and strategy on energy nationally/ regionally, either in long-term or medium term, in b. maxmize national/regional potentiality in response to the strategic condition of the environ- the form of natural resource and human ment in line with the expected condition of en- resource in order to accomplish energy in- ergy nationally/regionally in the future. depency; Specifically this part also defines all measures in c. improve accessibility to energy with ac- governing institutional and instrument of policy cessible price to the whole people; required in the management of energy nationally/ Business News 8581-8582/7-23-2014 regionally, inclucing the role and responsibility of Central Agency, Regional Government, State- interested parties, in order to support the imple- owned Business Entity, Regional-owned Busi- mentation of efforts and development programs ness Entity, and assocition in energy sector. on energy so as to conform the the plan. 4. Instrument of Policy Instrument of policy is instrument of the stat- Matters to be reviewed in this Chapter are as utory regulation nationwide, provincial, re- follows gency/municipality that is required to support 1. Policy activities in energy sector and is related to Apply all matters stipulated and targeted in energy management stipulated in the RUEN, the KEN or RUEN covering the prime policy RUED-P, or Regency/Municipality-RUED. or supporting policy on energy nationally/re- gionally to achieve the target that has been 5. Energy Development Program stipulated. Energy Development Program covers: a. Prime program constituting prime activity 2. Strategy of Central Government / regional govern- Explain the strategy according to the direction ment and/or national/foreign private enti- of the policy nationally/regionally. ties constituting application of effort in big scale, issue defining and improvement 3. Institutional of added value as well as having impact Management of energy nationally/regionally on national/regional development. Prime involves government agency and the relevant program is multi-years program involving stakeholder based on their respective duty several agencies in the implementation and function, such as,: Coordinating Minister thereof. in Economics, Minister of Energy and Mineral Resource, Minister of Finance, Minister of Na- b. Supporting program is activity/project of tional Development Planning/National Devel- central governemnt/regional government opment Planning Agency, Minister of Com- and/or small to medium scale national/for- 1 munication, Minister of Industry, Minister of eign private entities which impact is only ; Agriculture, Minister of Research and Tech- on regional development. Supporting pro- nology, Minister of Living Environment, Min- gram is one year to multi years term that ister of Forestry, Minister of Trade, Statistic ( involves seveva1 agen6es In Its operation. Business News 8581-8582/7-23-2014 29 This prime program may be compiled in matrix form containing: Example: I Sub-sector Policy Strategy Institution Instrument Program Name Value Period Location Prime Activity Investment 1. Electric Power Availability increase the (IDR Billion) Ministry Coordinating Law, Governement energy to the Development PLTG supply of 3.000 Economics, 2015- West Java Regulation, national needs electricity of a gas power Sunyaragi Ministry of Energy and 2018 Presidential Regulation, plant generating 600MW Mineral Resource, Presidential Instruction capacity Ministry BUMN, Ministry Regulation Ministry of Forestry, Ministry of Living Nr Environment c) cs, A N Ministry of Finance, r: ... N 00 Ministry of Industry, Lr) g; National Land Agency, Lr) 00 Bappenas, PT PLN i' Zb (Limited Liability), .c and Private 03 2. same as idem. idem. idem. above idem. idem. PLTG 4.000 2015- east java Grati 2019 ... ... 800 MW ... 1nd so forth ... idem. idem ••• ... idem. ... ... idem. ... idem idem idem idem. idem PRESIDENT OF THE REPUBLIC OF INDONESIA, sgd. DR. H. SUSILO BAMBANG YUDHOYONO ( MA )